CH 11
WHAT IS POSITIONING? Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
DEFINING ASSOCIATIONS Points-of-difference (PODs) Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand Points-of-parity (POPs) Associations that are not necessarily unique to the brand but may be shared with other brands
COPYRIGHT © 2009 DORLING KINDERSLEY (INDIA) PVT. LTD CONSUMER DESIRABILITY CRITERIA FOR PODS Relevance Distinctiveness Believability
COPYRIGHT © 2009 DORLING KINDERSLEY (INDIA) PVT. LTD DELIVERABILITY CRITERIA FOR PODS Feasibility Communicability Sustainability
COPYRIGHT © 2009 DORLING KINDERSLEY (INDIA) PVT. LTD EXAMPLES OF NEGATIVELY CORRELATED ATTRIBUTES AND BENEFITS Low-price vs. High quality Taste vs. Low calories Nutritious vs. Good tasting Efficacious vs. Mild Powerful vs. Safe Strong vs. Refined Ubiquitous vs. Exclusive Varied vs. Simple
ADDRESSING NEGATIVELY CORRELATED PODS AND POPS Present separately Leverage equity of another entity Redefine the relationship
PRODUCT DIFFERENTIATION Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance
CLAIMS OF PRODUCT LIFE CYCLES Products have a limited life Product sales pass through distinct stages each with different challenges and opportunities Profits rise and fall at different stages Products require different strategies in each life cycle stage
FIGURE 11.1 SALES AND PRODUCT LIFE CYCLE
FIGURE 11.2 COMMON PRODUCT LIFE-CYCLE PATTERNS
FIGURE 11.3 STYLE, FASHION, AND FAD LIFE CYCLES
STRATEGIES FOR SUSTAINING RAPID MARKET GROWTH Improve product quality, add new features, and improve styling Add new models and flanker products Enter new market segments Increase distribution coverage Shift from product-awareness advertising to product-preference advertising Lower prices to attract the next layer of price- sensitive buyers
MARKETING PROGRAM MODIFICATIONS
WAYS TO INCREASE SALES VOLUME Convert nonusers Enter new market segments Attract competitors’ customers Have consumers use the product on more occasions Have consumers use more of the product on each occasion Have consumers use the product in new ways
MARKET EVOLUTION STAGES